Digital Assets and the blockchain technology that they operate on have been turning heads in recent years, with more and more people becoming interested in them as potential investment opportunities.
One question people often ask about digital assets and blockchain is What Is DAI?
and How does it work?
In order to answer these questions, let’s take a look at what DAI are and how the technology works.
What Is DAI?
- DAI is technically associate Ethereum-based application engineered on the Ethereum blockchain.
- DAI continuously falls underneath the class of stable cryptocurrencies, additionally called stack coins. A stable cryptocurrency, or stablecoin, may be a cryptocurrency that's coupled to a different stable plus category like the greenback, pound or gold.
- Because DAI may be a cryptocurrency created on the Ethereum blockchain, DAI may be keep and transferred on to anyone, anyplace within the world, while not surfing third parties like banks or different central establishments.
- There area unit variety of different stable cryptocurrencies that have a stable one: 1 price pegged to a United States of America greenback. the foremost well-known stable cryptocurrency is Tether.
- Tether includes a reserve of actual United States of America greenbacks, bonds and different securities which will "back up" each single unit of tether that exists, and is controlled by a centralized organization.
- USDC (US greenback Coin) is additionally a awfully renowned stack coin and works within the same method. you'll see an outline of various stack coins here. Du kan se linear unit oversikt over ulike stablecoins her.
- Unlike Tether and also the majority of different major stable cryptocurrencies, DAI is decentralised, which implies that no centralized organization controls the availability of latest platform in circulation.
- Because the crypto market may be volatile, it's common to use DAI to shield against market fluctuations.
- DAI is additionally wide employed in services that supply decentralised loans and fixed costs funds.